Institutional investors are projected to hold 20% of Bitcoin's total supply, around 4.2 million BTC by 2026, according to a report from Bitwise.
Institutional interest in Bitcoin is driven by strategic financial decisions by governments, corporations, and wealth managers, rather than retail enthusiasm or tech innovation.
The report identifies five key groups of institutional buyers: nation-states, public companies, U.S. states, wealth management platforms, and sovereign wealth funds.
Recent accounting rule changes, Bitcoin ETF approvals by wealth management firms, and central banks considering Bitcoin as a reserve asset are key factors driving institutional adoption of Bitcoin.